Packaging Corp. to redeem $600 million Boise notes via new offering

By Tali David

Minneapolis, Oct. 15 - Packaging Corp. of America plans to redeem $300 million of Boise Inc.'s 9% senior notes and $300 million of Boise's 8% senior notes with the proceeds from a new senior notes offering, according to a 424B3 filed with the Securities and Exchange Commission.

Packaging Corp. entered into a Sept. 16 agreement to acquire and merge with Boise.

The company intends to use the remaining net proceeds, together with about $306 million of PCA's cash on hand and about $1.3 billion of new term loans under the credit facilities, to pay a portion of the consideration to be paid in the acquisition, to pay related fees and expenses and for general corporate purposes.

Packaging Corp. is a Lake Forest, Ill.-based manufacturer of containerboard and packaging.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.